The Voluntary Market
The voluntary carbon market is a non-compliance market where companies and individuals choose to offset their carbon emissions on a voluntary basis. Many companies have incorporated carbon offsetting as a part of their corporate social responsibility (CSR) policy.
Participants in the voluntary market generally prefer carbon credits sourced from projects with social and sustainable development benefits in developing countries. There are many types of carbon credits in the voluntary market, with Gold Standard credits, Certified Emission Reductions (CERs) and Verified Emission Reductions (VERs), being the most commonly used credits for voluntary offsetting, while EU Emission Allowances (EUAs) and Emission Reduction Units (ERUs) are used to a lesser extent.
As there are various standards, certification processes, and emissions registry services available for different types of VERs, the voluntary market can be perceived as complex and difficult to navigate. The price of a VER can vary enormously depending upon technology, the geographical location and the social and environmental benefits of each specific project. Tricorona has vast experience and knowledge from the voluntary market and can provide companies and individuals with carbon credits tailored to their individual needs.
A major consideration for participants buying carbon credits for offsetting purposes is reputational risk. Buyers want to ensure that the projects generating the carbon credits are of highest possible social and environmental integrity. Projects certified by the Gold Standard Foundation as well as the CDM carry the highest quality standard in the market. Credits from Gold Standard projects will often command a premium due to the unique characteristics and the high social and sustainable benefits of such projects.
To learn more about carbon offsetting please go to Climate Services.
